Movers of Wednesday 12 May 2021

Francesca Morgan
Vox Newswire
15:30, 12th May 2021

UDG Healthcare (UDG) shares ticked up 20.78% to 1,016.5p as it receives £2.6bn offer 

Shares in the FTSE 250 group jumped on Wednesday after the company informed investors that it has agreed to a £2.6bn cash offer from private equity firm Clayton, Dubilier & Rice. 

Under the terms of the acquisition,the Dublin-based health services group said shareholders will receive 1,023p per share, which represents a premium of 21.5% from Tuesday afternoon’s closing price. It expects to complete the deal in the third quarter of this year. 

 Commenting on the Acquisition, Eric Rouzier, CD&R partner, said: “UDG has long established itself as a leading provider of high-value services to Pharma and Biotech companies globally, supported by a highly skilled workforce.” 

He added, “CD&R has a strong record in partnering with management teams and we look forward to working with the UDG team to build on their success and help accelerate UDG’s growth and the development of its services offering to clients.” 

UDG price chart

Petro Matad (MATD) shares soared 21.37% to 7.1p following backing at Heron Field 

Shares in the Mongolian oil company have increased by over 7% in value since Monday morning when the company announced that it had received support from the Mineral Resources Professional Council (MRPC) for a development plan at its Heron Field. 

The company said the plan will be approved once some technical clarifications have been provided but that the items requiring clarification have now been received from the council.

Commenting on the approval, Mike Buck, Chief Executive of Petro Matad said, "We are pleased to have received the support of the Mineral Resources Professional Council for our Heron field plan of development and we are working with the designated representatives to provide clarification and complete any minor amendments as soon as possible.” 

MATD price chart

Baron Oil (BOIL) shares jumped 17.65% to 0.1p  

Shares in the oil and gas firm jumped today despite not having any news out. Last month, it unveiled the completion of its earn-in for an increased interest in the Chuditch discovery and prospects by increasing its shareholding in SundaGas TLS to 85% from 33.33%.  

This move saw the firm increase its indirect interest in the TL-SO-19-16 production sharing contract, which is known as ‘Chuditch’ offshore Timor-Leste, to a 63.75% interest from 25%. 

The work programme for the current, initial licence phase of the PSC includes an obligation to reprocess 800 sq. kilometres of 3D and 2,000 kilometres of 2D seismic data in the first two-year period, which expires on 18 December 2021, the company recently explained. 

Baron is now focused on progressing the PSC technical work programme activities which will enable an up-to-date assessment of the true potential of the Chuditch discovery and of the viability of drilling an appraisal well and further exploration wells “in a timely manner." 

BOIL price chart

Echo Energy (ECHO) shares rose 15.82% to 1.025p after it posts fourfold revenue rise 

Last week, the Latin American focused full cycle energy firm released its results for the year ended 31 December 2020 in which it stated that it had seen a fourfold increase in revenue during the period to US $11.1m (FY19: US $2.6m) which it said demonstrates its resilience.  

The Group said production remained in line with expectations during 2020 after a decision was made in April 2020, to temporarily shut in the majority of oil production and focus on gas. As a result, total production came to 720,000 boe (including 3,750 MMscf of gas) in the year. 

“Moving forward, we are excited by the continuing expansion opportunities at our SCS assets, where we aim to maximise production potential, and we are also encouraged by the potential for new hydrocarbon and/or renewable energy prospects in neighbouring Bolivia and elsewhere in the Region. The framework for 2021 and beyond has now been set in place, and we look forward to capitalising on our various growth catalysts,” said CEO, Martin Hull. 

ECHO price chart

Cineworld (CINE) shares fell 2.53% to 89.9p as posts results of AGM  

Shares in the cinema chain have shed over 6% in value since the beginning of the month. Last week, it was reported that Legal & General Investment Management planned to vote against the re-election of the company’s chairman, Alicja Kornasiewicz, at today’s AGM. 

In a statement released last Thursday, the firm said it possessed “strong concerns about the structure of the long-term incentive plan granted to the executives, and its misalignment with the long-term interests of the company, its shareholders and other stakeholders”. 

The move from shareholders comes at a crucial time for Cineworld which is set to reopen its sites in the UK on Monday as part of the UK’s next phase of easing lockdown restrictions.  

The firm told investors today that resolutions to approve the Directors' Remuneration Policy and the Directors' Remuneration Report were passed with support of around 74% of the votes cast. The Board said it will continue its dialogue with shareholders on remuneration matters. 

All other resolutions were passed with high levels of support ranging between 85% and 99%. 

CINE price chart

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The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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